Business Succession Planning: Preparing for a Smooth Transition

Posted by D&V Accounting Services

Sep 8, 2014 11:00:00 PM

Effective Financial Planning and Forecasting

As a business owner, deciding on critical issues is part of your routine – from having simple management preferences to resolving complex business issues. But even when you’re constantly making tough choices, deciding to go full swing on a strategic exit plan is still one of the most difficult decisions you have to make.

Common options for business exit plans include selling your business or extending the control of the company to the other members of the family. Common options for business exit plans include selling your business or extending the control of the company to the other members of the family. Both of these have serious implications on the continuity of your business and on the cash you can generate from your chosen strategy. But whichever way you go, the important thing is that you have devised a plan for your exit strategy. Here’s a basic rundown to help you do just that:

Developing the plan

Devising a concrete blueprint is significant to the success of your chosen exit strategy. This process helps you anticipate possible challenges in relinquishing the control of your business. In a nutshell, planning is the initial step that allows you to engage in an effective business intelligence consulting even before the difficulties set in. The details included in your plan depend on various factors. Even so, you have to cover the basics such as identifying areas of expertise required for the successor and determining the ideal timeline for your exit strategy, among others.

Keeping communication lines open

Coordinating with your stakeholders effectively is another significant aspect to the success of your exit plan. You can do this by sharing the salient points of your business intelligence consulting plans without unnecessarily disclosing all the nitty-gritty details. Communicating well with your stakeholders gives them the security of knowing that the management is exerting serious efforts to uphold their interests.

Collaborating with stakeholders

Go deeper into the communication process by listening to what your stakeholders have to say. If you are seriously considering business succession, involving your stakeholders in the process can make a huge impact. With business operations keeping your hands full, you might not be the best person to identify potential successors. By getting feedback from your stakeholders, you can have a more objective view of which of your potential successors have the right qualities to take on the position you are vacating.

Teaching the ropes

At this point, the list of your potential successors should be narrowed down to three or four.

Train these individuals to prepare them for the lead management role. While the training process is ongoing, you can look into the performance of each of the potential successors and assess which of them is the best person for the job.

Accomplishing the plan

Putting your exit plans to work is a gradual process. Simply put, the implementation phase doesn’t just happen in one go. Ideally, you should find a comfortable pace for the transition process to keep the successor attuned to the responsibilities that come with the new role.

Working out an exit strategy to improve your business intelligence consulting initiatives is a long and tedious process, but it’s potentially profitable, too. This is why you need to get all the resources you can to make sure your exit strategy works to your advantage.

Want to know more about keeping your business moving forward? Click here to contact D&V Philippines.

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